California Consumers’ Beliefs and Trust in Electric Utilities

Abstract

The authors use survey and interview data from California homeowners to understand customers’ trust in their utility company. The authors find that customers’ beliefs about the reliability of electricity do not predict trust. Instead, what matters are beliefs that the utility company does a bad job managing customer service, costs, and wildfires. Distrust among survey respondents aligns with interview participants’ descriptions of utility companies as powerful, greedy monopolies that benefit themselves at the expense of helpless consumers. These results have implications for the energy transition and, more generally, understanding potential challenges experienced by technocratic institutions.